Printable Broker Price Opinion Form

When filling out and using the Broker Price Opinion (BPO) form, it is essential to keep several key points in mind to ensure accuracy and effectiveness.

• Understand the Purpose: The BPO is used to estimate the value of a property based on current market conditions and comparable sales.
• Market Conditions: Clearly indicate the current market condition, such as whether it is depressed, stable, or improving.
• Comparable Listings: Provide detailed information about comparable properties, including sale prices, days on market, and adjustments made for differences.
• Occupancy Status: Specify the occupancy status of the property, whether it is occupied, vacant, or unknown, as this can affect marketability.
• Repairs Needed: Itemize all necessary repairs to bring the property to average marketable condition, and include estimated costs.
• Market Value: Ensure that the suggested market value falls within the range established by comparable closed sales.
• Comments Section: Use the comments section to highlight any specific concerns, such as environmental issues or unique property features.
• Signature and Date: Remember to sign and date the form to validate the BPO and confirm its accuracy.

By following these guidelines, you can effectively complete the Broker Price Opinion form and provide a reliable assessment of the property's value.

What is a Broker Price Opinion (BPO)?

A Broker Price Opinion is an estimate of a property's value, provided by a licensed real estate broker. It is often used by lenders and financial institutions to assess the market value of a property, especially in situations like foreclosures or short sales.

What information is included in a BPO form?

The BPO form includes details about the property being evaluated, such as its address, condition, and marketability. It also contains information about comparable properties in the area, market conditions, and any necessary repairs. This data helps in determining a fair market value.

How is the market condition assessed in a BPO?

The market condition is assessed based on various factors, including employment rates, the number of comparable listings, and whether the market is stable, improving, or declining. Brokers analyze these factors to provide an accurate picture of the local real estate market.

What are comparable sales, and why are they important?

Comparable sales, or "comps," refer to properties similar to the subject property that have recently sold. They are crucial for establishing a property's value, as they provide a benchmark for pricing based on actual market transactions.

What factors influence the value adjustment in a BPO?

Value adjustments can be influenced by several factors, including the property's location, condition, and features. Adjustments may be made for differences in square footage, number of bedrooms and bathrooms, and amenities like garages or pools. These adjustments help to refine the estimated value of the property.

What is the significance of the marketing strategy section in a BPO?

The marketing strategy section outlines how the property should be marketed based on its condition and potential buyer demographics. This can include whether the property will be sold as-is or if repairs will be made to enhance its marketability.

How does occupancy status affect a BPO?

The occupancy status of a property can significantly impact its value. An occupied property may require more effort to sell, while a vacant property might attract different types of buyers. This status is taken into account when determining the property's marketability and value.

What is the role of repairs in a BPO?

Repairs are listed to indicate what work is needed to bring the property to an average marketable condition. The estimated cost of these repairs can affect the overall value and should be considered when determining the property's suggested list price.

How is the final market value determined in a BPO?

The final market value is determined by analyzing the data collected throughout the BPO process, including comparable sales, market conditions, and any necessary adjustments. This value helps guide pricing decisions for the property.

Broker Price Opinion - Usage Instruction

Filling out the Broker Price Opinion (BPO) form is an essential step in assessing property value. By providing accurate information, you help ensure a reliable evaluation. Follow the steps below to complete the form correctly.

1. Begin by entering the Loan # and REO # at the top of the form.
2. Fill in the PROPERTY ADDRESS, FIRM NAME, PHONE NO., and the DATE.
3. Indicate whether this is an Initial, 2nd Opinion, or Updated BPO, or if it is for Exterior Only.
4. Provide the SALES REPRESENTATIVE name and BORROWER’S NAME.
5. Complete the COMPLETED BY section and include your FAX NO..

Next, move to the GENERAL MARKET CONDITIONS section. Here, assess the current market condition and employment conditions, selecting the appropriate options. Enter the percentage of owner-occupants in the neighborhood and note the supply of comparable listings.

6. In the SUBJECT MARKETABILITY section, indicate the range of values in the neighborhood and the marketing time.
7. Answer whether all types of financing are available for the property and provide details if not.
8. Check if the property has been on the market in the last 12 months and list the price if applicable.
9. Identify the Unit Type and provide details about any associations, including fees and contact information.

Now, proceed to the COMPETITIVE CLOSED SALES section. List comparable properties, their sale prices, and relevant adjustments. Include details about location, condition, and any other significant factors.

10. Continue with the MARKETING STRATEGY section, indicating the condition of the property.
11. Specify the Occupancy Status and identify the most likely buyer.
12. Itemize all necessary repairs and check those you recommend for successful marketing.

After completing the repairs section, move on to the COMPETITIVE LISTINGS section. Similar to the closed sales, list comparable properties, their prices, and necessary adjustments.

13. In the MARKET VALUE section, provide the suggested list price and quick sale value.
14. Finally, include any comments regarding specific concerns or conditions of the property.
15. Sign and date the form to complete your submission.